Fair value measurements (Tables)

3 Months Ended

Jan. 31, 2015

Financial Assets and Liabilities Measured on Recurring and Non-Recurring Basis

The following table sets forth our financial assets and liabilities as of January 31, 2015 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy:


	Level 1		Level 2		Level 3		Total
	(All amounts are presented in thousands)
Assets at Fair Value:
Investment in Limoneira Company⁽¹⁾	$	35,954		—		—	$	35,954

Total assets at fair value	$	35,954	$	—	$	—	$	35,954

⁽¹⁾

The investment in Limoneira Company consists of marketable securities in the Limoneira Company stock. At January 31, 2015 we own approximately 12% of Limoneira’s outstanding common stock. These securities are measured at fair value by quoted market prices. Limoneira’s stock price at January 31, 2015 and October 31, 2014 equaled $20.80 per share and $25.66 per share. Unrealized gains and losses are recognized through other comprehensive income. Unrealized investment holding losses arising during the quarters ended January 31, 2015 and 2014 were $8.4 million and $9.6 million.

The following table sets forth our financial assets as of January 31, 2015 that are measured on a non-recurring basis during the period, segregated by level within the fair value hierarchy:


	Level 1		Level 2		Level 3		Total
	(All amounts are presented in thousands)
Assets at Fair Value:
Investment in FreshRealm⁽²⁾	$	—	$	—	$	16,962	$	16,962

Total assets at fair value	$	—	$	—	$	16,962	$	16,962

⁽²⁾

We estimated the fair value of our noncontrolling interest in FreshRealm by performing a forecast projection analysis. This analysis was conducted with the consultation from a third party consulting firm. Increases or decreases in the fair value calculation can result from changes in assumed discount periods and rates, changes in the assumed timing and amount of revenue and expense estimates. Significant judgment is employed in determining the appropriateness of these assumptions. Our investment in FreshRealm has been recorded as investment in unconsolidated subsidiaries on our balance sheet.

Reconciliation of Contingent Consideration

The following is a reconciliation of the beginning and ending amounts of the contingent consideration for RFG:


	Balance at October 31, 2013		Interest		Revalue Adjustment		Balance January 31, 2014
			(All amounts are presented in thousands)
RFG contingent consideration	$	15,602	$	—	$	9,287	$	24,889

Total	$	15,602	$	—	$	9,287	$	24,889

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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